When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

Posted by: Pdfprep Category: IIA-ACCA Tags: , ,

A multinational organization has multiple divisions that sell their products internally to other divisions.

When selling internally, which of the following transfer prices would lead to the best decisions for the organization?
A . Full cost
B . Full cost plus a markup.
C . Market price of the product
D . Variable cost plus a markup

Answer: C

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